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Insights & News / Diana Sattarov Kofman
Do All Business Collaborations in Israel Require Partnership Registration?
The Israeli Registrar of Partnerships has begun issuing warning letters to businesses that failed to register as partnerships, requiring registration within 45 days. Whether a business collaboration constitutes a partnership depends on the nature of its actual activities, including profit-sharing, joint management and decision-making, and sharing of expenses. Failure to register does not negate a partnership’s existence and may expose partners to personal liability for its debts. Businesses should therefore review their arrangements and registration requirements before commencing activities or upon receiving a warning letter.